How can businesses successfully avoid pitfalls when adopting IIoT?
The Industrial Internet of Things, once thought of as the future, is here NOW but it’s clear that companies need to identify their strategy, partners, and process in order to take advantage of the strategic advantages, including cost savings and speed, that the IIoT presents for industry.
It can be like stepping into the future, suddenly companies are able to leverage information and speed beyond their wildest dreams. Intelligent machines, the ability to pull analytics with incredible precision and the connection of human capital for more efficient operations and communications, can combine to be an incredible savings. Imagine a modest saving; through fuel and operational savings. For example, the energy sector can use sensors to monitor performance on turbines and quickly tweak them into their highest performance remotely, without sending a worker to adjust them.
Across various industries, you can envision the impact even at such a conservative estimate:*
• $30B fuel cost saving in aviation industry
• $66B fuel cost saving in gas powered fleets
• $63B productivity improvement in healthcare
• $90B reduction in Cap X in oil & gas exploration and development
• $27B productivity improvement in rail industry
* Projected savings are based on 1% efficiencies/savings
Source: Industrial Internet: Pushing the Boundaries (2012, Evans & Annuziata)
Here’s one example to demonstrate how to get to that 1% savings or beyond. Examine building energy controls; they can be connected using an IoT platform to help a company manage its lighting, HVAC, plug load, fans and other sensors. This can result in significant savings by using energy only when needed. Maintenance could be arranged proactively via the platform, utilizing data on product installation dates, therefore saving on more costly critical repairs later.
Even with the promise of such savings, adoption of IIoT is slower than expected. An overwhelming majority of business leaders see the IIoT as key to the future of their company. Four out of five business executives believe that the adoption is a critical driver of their company’s success with even higher rates among high tech and enterprise executives. Yet among them only 25% of executives have a clear strategy to adopt IIoT, according to new research by think tank Genpact Research Institute, in collaboration with IndustryWeek, GE Digital and the Industrial Internet Consortium.
The task can seem overwhelming, but with careful planning it can be seamless, and profitable.
How to get started:
Set out a vision:
• Establish economic motivations for engaging in IIoT
• Get an overview of the overall market, and the competitive environment
• Forecast: How is it likely to change in coming years?
• Create a plan to work with partners and a larger IIoT ecoysystem
• Identify existing capability gaps
• Create or adopt a framework for tracking IIoT projects
• Assign a budget
Realize and plan for the fact that:
• Implementing IIoT has the challenges that come with blending both fast moving,
techonology and traditionally slower, manufacturing sectors.
• IIoT projects often imply significant change to working practices that have been established over decades
Bring in partners:
• IIoT platform partners can help with the overall support of technical infrastructure. This will exist in an enterprise to support IIoT projects.
• IIoT consulting will help bridge gaps in capabilities and process. As these concepts are sufficiently new and need to draw on both traditional industry and technology, having a wider base of consulting ability will help.
• Use IIoT benchmarking to identify best practices within the industry, and assess the overall maturity of IIoT concepts.
The adoption or transition to the Industrial Internet of Things can be incredibly impactful for profit, employee safety, and innovation but companies won’t be able to reap the benefits until they take the first steps towards adopting the technology that will certainly be ubiquitous in the coming years.
Guest blog: Convetit
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